'Bloomberg Technology' Full Show (02/24/2023)
CAROLINE: I'M CAROLINE HYDE A BLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK. ED: I AM AS A SAN FRANCISCO THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: TECH STOCKS TAKE A HIT, LATEST INFLATION PRINT SPOOKING INVESTOR SENTIMENT. ED: THAT LOOK ON M&A AS THE JUSTICE DEPARTMENT EYES ADOBE'S BID. CAROLINE: WE TAKE A LOOK AT WHY CYBERSECURITY IS MORE IMPORTANT NOW THAN EVER. ALL THAT AND COMING UP, BUT
FIRST-AID KEY CHECK IN THE MARKETS -- FIRST, KEY CHECK ON THE MARKETS, MACRO, THE PCE, THE PREFERRED INFLATION READING THE FED KEEPS AN EYE ON. NASDAQ IS DOWN REPORT 3% OF THE WEEK -- IS DOWN 3.3% ON THE WEEK. THE VIX, VOLATILITY GAUGE, RISES A LITTLE BIT UP THE 21
HANDLE. LET'S LOOK AT THE KEY RISK ASSETS. I BRING YOU THE WORLD OF CRYPTO, UNDER PRESSURE, THIS IS A WORRY AS WE SEE CORRELATIONS BETWEEN THE TECH STOCKS AND THEREFORE WHAT IS HAPPENING WITH CRYPTO. IT JUST ROSE A LITTLE BIT ONCE AGAIN. ED: WHEN YOU LOOK AT SINGLE NAMES, THE RISK OF HEARD MENTALITY IS IN EFFECT RIGHT NOW. THE NASDAQ 100, FRIDAY 100
NAMES IN THE RED, -- 91 NAMES IN THE RED. THIS IS THE WORST WEEK OF THE YEAR FOR THE NASDAQ 100 SO FAR. WE ARE LOOKING AT THAT PCE PRINT, IT WAS ACCELERATING UNEXPECTEDLY IN JANUARY. THIS IDEA THAT THE FED WILL HAVE TO GO FURTHER FOR LONGER AND HIGHER RATES DISCOUNT THE PRESENT VALUE OF FUTURE PROFITS. THAT IS WHAT I SEE ACROSS THE NASDAQ 100 THIS FRIDAY, AND ON A WEEKLY BASIS A SIGNIFICANT DECLINE ON THE INDEX. MULTIPLE SOFTWARE LAYING -- NAMES AND LAGGARD. -- A LAGGARD. BLOOMBERG REPORTING THAT THE
DOJ COULD BRING AN ANTITRUST MOTION TO BLOCK THE BID FOR FIGMA. ADOBE, ANOTHER FIRE WILL DOUBLE SOFTWARE NAME, A LOT OF ATTENTION -- MULTIPLE SOFTWARE NAME A LOT OF ATTENTION ON THAT. BLACKROCK SPEAKING EARLIER TODAY TO JOHN, SEES SOME SILVER LININGS FOR THE TECH SECTOR. GUEST: THERE IS A DECENT AMOUNT OF OVER HIRING ACROSS TECH, SOFTWARE, AND PARTS OF 70S.
-- SEMIS. WE ARE SEEING THEM GET OUT AHEAD OF THE MARKET AND ANNOUNCING LAYOFFS. THAT IS PRODUCTIVE, EXPECT THEY WILL WEATHER THE ECONOMIC AND POLICY STORM WELL. WHAT I'M ENCOURAGED BY IS HOW HONESTY GUIDANCE WAS REPORTING IN FOURTH-QUARTER. CAROLINE: LET'S DIG IN WITH NANCY, YOU KNOW HER FROM TANGLED OR -- INVESTMENTS, THE CEO AND CIO ROLE, NANCY IT IS GREAT TO HAVE YOU. DO YOU AGREE WITH THE LACK
ROCKVIEW THAT COMPANIES IN THE TECHNOLOGY -- BLACK ROCKVIEW AND THAT COMPANIES AND THE TECHNOLOGY SPACE ARE TAKING THE RIGHT ACTION? >> I DO, WE WERE ARGUING IN FOURTH-QUARTER IS TIME TO START ADDING RISK INTO YOUR PORTFOLIO VIA TECH AND CONSUMER DISCRETIONARY. THE REASON FOR THAT, THE COMPANIES THAT WE OWN AND LIKE, THEY ARE DESERVE -- DELIVERING STRONG BEATS EVERY QUARTER OF LAST YEAR. RAISING GUIDANCE AND THEY'RE STILL NOT FEELING THE LOVE FROM WALL STREET. WE LIKE THE NAMES THAT ARE RELIABLE EARNINGS GROWERS WITH STRONG MANAGEMENT TEAMS.
TECHNOLOGY AND ENERGY ARE THE TWO MOST PROPHETIC -- PRODUCTIVE SECTORS ON A REVENUE PER EMPLOYEE BASIS. USING APPLE AS AN EXAMPLE, THEY ARE 500 FEET -- BOTH GOT VERY FAT AND HAD TO SHED EMPLOYEES. THAT IS A GOOD THING FOR THE BOTTOM LINE. THE COMPANIES WE LIKE THE MOST HAVE NOT HAD TO DO THAT.
THEY MANAGED THROUGH THE PANDEMIC VERY WELL. ED: I WANT TO GET TO THE BIG NAMES, BUT I DO FEEL LIKE THERE IS ENERGY IN THIS IDEA AROUND A MORE HAWKISH FED. IT IS RELEVANT TO THE TECHNOLOGY SECTOR. PCE FRIDAY WAS THE LATEST OF A SERIES OF DATA POINTS AND FED SPEAK THAT CHANGE THE MINDSET, AT LEAST IN THE SHORT TERM, YOU AGREE WITH THAT? GUEST: I HAVE BEEN PRETTY CRITICAL OF THE FED. I UNDERSTAND WHY THE MARKET HAS NOT BELIEVED WHAT THEY SAID. WE SAID WE THOUGHT INFLATION PEAKED IN JUNE. THAT IT RISES MOSTLY
SYMMETRICALLY ON THE WAY ON THE WAY DOWN. IT IS NEVER LINEAR. MARK IS PLAYING -- PAYING -- MARKETS PAYING SUCH CLOSE ATTENTION TO NUMBERS THAT GET REVISED AND NOT SO MUCH YOU TRENDS. THIS IS AN OPPORTUNITY TO STEP IN AND CONTINUE TO BUY THESE NAMES.
AS SOON AS THE MARKET STOPPED TRADING ON INTEREST RATE FEARS AND START TRADING ON FUNDAMENTALS YOU WILL BE WELL-POSITIONED FOR THE NEXT THREE TO FIVE YEARS. THAT IS OUR INVESTING TIME HORIZON. ED: YOU TEASED US WITH TWO NAMES YOU ARE EXCITED ABOUT, DO YOU CARE TO SHARE MORE ABOUT WHO THEY ARE? GUEST: I AM HIDING OUT AT INCLINE VILLAGE TRYING TO FINISH MY BOOK. CAROLINE: TEASING A BOOK AS WELL, NO AND OF TEASING -- END OF TEASING. GUEST: ONE HAS REPORTED, THAT IS PALO ALTO NETWORK. WHAT WE SAID IN OUR NETWORKS IS
WE WANT TO OWN OLD ECONOMY COMPANIES THAT ARE EMBRACING THE DIGITAL AND AI RESOLUTION, AND SUPPLIERS OF THAT TOOL. THEY BEAT ON RED SCUM THEY BEAT ON BILLINGS, THEY ARE NEXGEN -- REDS, THEY BEAT ON BILLINGS, THEY GROSS MARGIN BEAT, THERE IS NOTHING NOT TO LIKE ABOUT THIS COMPANY. SERVICE NOW, BILL MCDERMOTT IS THE BEST CEO IN CORPORATE AMERICA, THEY TURNED IN AN EXCELLENT QUARTER. THEY BEAT AND THEY RAISED AND THEIR MARGINS HOLD UP NICELY.
SOLUTIONS ON THE CLOUD, PALO ALTO CYBERSECURITY SOLUTIONS. BOTH THOSE NAMES ARE PART OF THE 12 BEST IDEAS PORTFOLIO. CAROLINE: TALK TO US AS LITTLE BIT ABOUT THE AI HYPE. WHETHER OR NOT YOU FEEL IT WILL ULTIMATELY CHANGE EVERY INDUSTRY.
>> I DO THINK SO. HOWEVER WE ARE EARLY. ONE OF MY COLLEAGUES CHAT GPT'D ME AND I LEARNED A LOT OF THINGS I DID NOT KNOW. THERE ARE PROBLEMS AND IT COULD BE FACTOR. YOU LOOK AT A COMPANY LIKE DEERE AND THEY USE AI TO TARGET FERTILIZING A SINGLE SEAT. THIS COMES IMPORTANT AS YOUNG PEOPLE DO NOT WANT TO BECOME FARMERS, WE HIT UP AGAINST A STRUCTURAL LABOR SHORTAGE IN THIS COUNTRY, I DO BELIEVE I'M THE LAST BABY BOOMER WORKING.
THE PEOPLE THAT RETIRED ARE NOT COMING BACK. WE HAVE TO SOLVE OUR PROBLEMS WITH TECHNOLOGY. MANY COMPANIES ARE DOING IT SIMPLISTICALLY.
A PUBLIC STORAGE THAT ALLOWS CLIENTS TO SIGN UP AND ACCESS STORAGE LOCKER WITHOUT HUMAN CONTACT ALL THE WAY UP TO CORRECTING WATER INFRASTRUCTURE PROBLEMS DIGITALLY FROM A CENTRAL AREA AND IS 1.5 TIMES PROFITABLE. I THINK IT IS REAL. AI IS EARLY. AS WELL WE LIKE IN A LIKE SOFT AND -- MICROSOFT THAT IS IN OUR 12 BEST PORTFOLIO.
I THINK YOU HAVE TO BE EXPOSED, WE ARE LOOKING FOR OPPORTUNITIES ALL THE TIME. CAROLINE: ALWAYS OWNING YOUR EXPERIENCE, NOT WHAT GENERATION YOU ARE BORN IN. TELL US LASTLY WHERE YOU LOOK NOW, WE HAVE ALL BEEN TRADING OFF OF EARNINGS. NOW LOOKING TOWARDS MARGINS, FOCUSED ON EFFICIENCY. WHAT ARE THE NEXT KEY WORDS, PHRASES, OR DATA POINTS YOU'LL BE TRADING? GUEST: I THINK INFLATION IS THE OVERRIDING CONCERN THAT THE MARKET HAS.
THE FED LET IT GO FOR TOO LONG YOU KNOW THIS, AT, BEING A CALIFORNIAN. YOU GET A CONTROLLED BURN AND CAN EASILY TURN INTO A WILDFIRE. THAT IS WHAT WE SAW. CAN THEY REIN IT BACK IN? THE LEADING INDICATORS THAT WE LOOK AT INDICATE THEY CAN. THE LEADING INDICATORS INDICATE WE WILL GO INTO A MILD RECESSION. THOSE ARE THE KEYWORDS THEY WILL BE TRADING OFF OF.
WE WILL USE THAT VOLATILITY TO ADD TO HOLDINGS AN HOUR PER FOLIO. CAROLINE: SO SMART USING TECH FOR INVESTING OR INVESTMENT. TAKING SOME TIME OUT TO WRITE A BOOK. ED: UP IN INCLINE VILLAGE OF ALL PLACES. THAT IS ONE PLACE I WOULD LOVE
TO BE THIS WEEK. SHE MAKES THE SAME POINT, YOU WANT TO BE POSITIONED WITH THOSE NAMES BEST PLACED TO TAKE ADVANTAGE. NOT A SILLY RATHER HYPE FOR AI, BUT THE INVESTMENT TO COME WHEN -- NOT NECESSARILY THE HYPE FOR AI, BUT THE INVESTMENT TO COME WHEN COMPANIES NEED THOSE TOOLS. CAROLINE: THEY HAVE BEEN THEMES ON THE DOWNSIDE, I FEEL EACH EARNINGS SEASON BRINGS THIS. IF WE CAN BROAD BRUSH RETAILERS ONE SECTOR.
DIG INTO THE LIKES OF E-COMMERCE PLAYERS HAVE A STICKING POINT WE HAVE SEEN THIS WEEK. LET'S REFLECT FOR A MOMENT ON SOME OF THE EARNINGS COMING FROM THE LIKES OF EBAY. THE SELLOFF WE SAW ALSO PRINT FULL -- PAINFUL IN WAYFAIR. ETSY SO -- SHOWED SOME GROWTH
BUT THERE IS CONCERN ABOUT FORWARD-LOOKING GUIDANCE. I AM UNDER WHAT WE WILL SEE FROM THE BRICK-AND-MORTAR STORES NEXT WEEK AND IF THEY CAN LEAN INTO DIGITAL. ED: OUR COLLEAGUES AT BLOOMBERG NEWS HAVE CRUNCHED THE NUMBERS OF INDEX ON HOW FAR OFF WE ARE FROM THE PANDEMIC TIES. WHAT THE NAMES -- PANDEMIC HI GHS.
WHAT THE NAMES HAVE IN COMMON IS THAT THERE IS A DROP OFF IN ACTIVITY. THERE ARE FEW GLIMMERS OF HOPE. CAROLINE: WE BOUGHT TOO MUCH ONLINE, WE SPENT ON WAYFAIR, IS NOW ABOUT EXPERIENCES, GETTING ON A FLIGHT AND VISITING YOU IN CALIFORNIA. IS THE PENDULUM SWINGING THE OTHER WAY AND WE OVERREACT TO IT? ED: THE ECONOMIC DATA IS COMING IN AND WE WILL CONTINUE TO TRACK IT. THE DOJ ACING UP WITH ADOBE
ABOUT ITS FIGMENT DEAL -- FIGMA DEAL. WE'LL HAVE MORE ON THAT NEXT. THIS IS BLOOMBERG. ♪ >> NOT SO FAST ADOBE. THE JUSTICE DEPARTMENT IS PREPARING A SUIT TO BLOCK ADOBE'S $20 MILLION PURCHASE OF FIGMA ACCORDING TO SOURCES. IT COULD COME AS SOON AS NEXT
MONTH. THIS IS A BIG DEAL. YOU LIKELY KNOW ADOBE AS PHOTOSHOP OR PREMIER, FIGMA HAS PRODUCTS THAT TROUNCED ADOBE'S COMPETING PRODUCTS. THERE FOR EVERYDAY USERS ON THE WEB AND THAT IS A MARKET FIGMA IS RAPIDLY CONTROLLING. ADOBE MADE ATTEMPTS TO BUY THEM IN 2020 AND 2021, MILLIE THEY SEALED THE DEAL WITH A PRICE TAG -- ULTIMATELY THEY SEALED THE DEAL IT PRICE TAG DOUBLE THE VALUATION. IT IS ONE TO WATCH. ED: STORY OF THE DAY, ONE OF THE
STORIES OF THE WEEK. LOOKING AT THE SHARES OF ADOBE THIS FRIDAY. DOWN ALMOST 8%. THE BIGGEST DROP SINCE SEPTEMBER. YOU AND I HAVE TAUGHT FOR 24 HOURS ABOUT THE IDEA THAT SOME REGULATOR SOMEWHERE WAS NOT -- LOOKING AT THIS DEAL WAS NOT SURPRISING. HOW QUICKLY THE DOJ MOVED CERTAINLY WAS. AS I READ THE NOTES EARLY THIS
MORNING THERE IS A LITTLE BIT OF JITTERS OUT THERE ABOUT THE RISK OF A DOGE -- OF ADOBE NOT BEING ABLE SEAL THE DEAL. CAROLINE: ISN'T IT IRONIC THAT THE SHARES OF ADOBE FELL SO HARD, THEY NOW WORRY ABOUT THE TIME, INVESTMENT, THE FOCUS THEY HAVE GIVEN. LET'S FOCUS ON ARBITRAGE IN THIS CURRENT ENVIRONMENT.
SHE IS BEEN ON ALL DAY, RELIGIOUSLY BRINGING ANALYSIS COMING OUT OF THE PROBABILITIES TO DECIDE IF IT GETS THROUGH OR NOT. I AM SUPPOSED WE ARE NOT SURPRISE THE U.S. ADMINISTRATION IS EYEING SUCH A DEAL. GUEST: THE TIMING IS TOUGH FOR ADOBE. WE HAVE AN AGGRESSIVE ADMINISTRATION IT COMES TO M&A AND PARTICULARLY TECH COMPANIES.
A DEAL LIKE THIS WE SEE AN INCUMBENT BUYING A SCRAP YOUR, NEWER, NASCENT STARTUP. ONE THAT IS RIVALING AND COULD BECOME THE BIGGER COMPETITOR IN THE FUTURE. IT LOOKS LIKE A DEFENSIVE DEAL WHERE IT IS TRYING TO TAKE COMPETITION NOW THE MARKET. THERE IS A PARTICULAR
SENSITIVITY TO THAT. THE THING ABOUT PROFITABILITY, IT IS REALLY HARD AS THE DOJ SUES TO UNDERSTAND WILL HAPPEN AT TRIAL. THE CASES ARE HARD FOR THE DOJ TO WIN, HAS NOT HAD A RATE TRACK RECORD. WE WILL HAVE TO SEE HOW THE EVIDENCE SHAKES OUT. SUPERFICIALLY IT SEEMS LIKE THE DOJ HAS A DECENT CASE. CAROLINE: REMIND US OF THE TRACK RECORD. GUEST:
DEAR JAY FTC HAVE BOTH DECIDED WE WILL -- DOJ AND THE FTC SAY THEY WILL BRING THE TOUGH DEALS AND CHAUNCEY TOP DEALS. IN THE PAST -- CHALLENGE THE TOUGH DEALS. THEY SAY HAS NETWORK, WE ALLOWED TOO MUCH -- THIS HAS NOT WORKED, WE HAVE ALLOWED TOO MUCH CONSOLIDATION. WE REGRET SOME OF THE DEALS OF THE PAST, FACEBOOK AND INSTAGRAM, YOUTUBE AND GOOGLE. WE HAVE TO TAKE THESE CASES TO COURT EVEN IF THEY ARE TOUGH. WHEN THEY DO THAT THEY WILL LOSE SOME. THE DOJ LOST A CHALLENGE TO
STOP UNITED HEALTH CARE FROM BUYING CHANGE. THAT WAS A DEAL THEY HAD A TOUGH TIME. FTC RECENTLY LOST ITS CHALLENGE TO META-TO STOP BUYING A SMALL VIRTUAL-REALITY COMPANY. THEY HAVE HAD SUCCESS IS NOT SO MUCH FROM LITIGATING, BUT GETTING COMPANIES TO ABANDON THE DEAL PRIOR TO A FINAL DECISION. ED:
IT IS IMPORTANT TO POINT OUT AS WELL, THAT ACCORDING TO SOURCES, THIS IS WHAT THE DOJ IS CONSIDERING. ONE SOURCE SAID THIS COULD HAPPEN AS SOON AS NEXT MONTH. MEETINGS BETWEEN THE DOJ AND ADOBE HAVE BEEN TAKING PLACE.
ADOBE ISSUED THIS STATEMENT. WE ARE ENGAGED IN CONSTRUCTIVE AND COOPERATIVE DISCUSSION WITH REGULATORS IN THE U.S., U.K., AND E.U. AMONG OTHERS. I WANT TO BRING THIS UP NOT JUST TO GET ADOBE'S SIDE OF THE STORY ACROSS, BUT GLOBALLY THEY HAVE THE PAST A NUMBER OF TESTS. CAN YOU DISTILL FOR THE AUDIENCE WHAT THAT TEST WILL BE? IT SEEMS TO BE CENTERING AROUND XD. GUEST: THAT IS RIGHT, IT LOOKS LIKE A
COMPETITOR TO FIGMA'S OFFERING, THEY ARE TAKING CUSTOMERS FROM ADOBE AND THAT IS PURE REGULATION IN THE MARKET. RIGHT NOW THE REGULARS ARE COORDINATED, THERE IS DISCUSSION BETWEEN THE U.S., AND U.K., AND THEY ARE ALIGNED ABOUT BEING AGGRESSIVE WITH BIG TECH. TO THE EXTENT THAT ADOBE CAN WORK OUT A SETTLEMENT OR COMPROMISE WOULD ALLOW THIS DEAL TO CLEAR, IT WILL HAVE TO GET ALL THREE OF THOSE REGULATORS TO COME TOGETHER TO AGREE TO THAT. MAYBE IT WOULD BE THE
DIVESTMENT OF ADOBE EXD. -- XD. POSSIBLY THAT WILL FIX THE ISSUE. I DO NOT KNOW IF THEY'LL BE ENOUGH. THEY MAY ALSO BE CONCERNED ABOUT THE POSSIBILITY THAT FIGMA COULD GROW INTO A BIGGER COMPETITOR IN THE FUTURE YOUNG BE -- BEYOND THE XD PRODUCT. ED: THE OTHER DEAL IS MICROSOFT AND TO -- ACTIVISION, YOU ARE OUR SENIOR ANALYST FOR ANTITRUST LITIGATION. HOW IS THIS ENVIRONMENT
COMPARED TO THAT OF THE PAST? IT SEEMS TOUGH TO PULL OFF A BIG PIECE OF TECH M&A RIGHT NOW. GUEST: IT IS REALLY TOUGH. ALL THE DEALS WILL GET A LOT OF SCRUTINY BY THE FTC AND DOJ. MICROSOFT ACTIVISION DEAL IS A PERFECT EXAMPLE OF HOW THINGS HAVE CHANGED. FIVE OR 10 YEARS AGO, THAT DEAL IS WHAT WE WOULD CALL A VERTICAL DEAL. THEY DO NOT COMPETE HEAD-ON. THERE AT DIFFERENT LEVELS OF THE SUPPLY CHAIN. THAT KIND OF DEAL YEARS AGO WAS
PRETTY MUCH A SHOE IN. SOMETIMES A COMPANIES WOULD HAVE TO AGREE TO BEHAVIORAL CONDITIONS TO GET THE DEAL TO CLEAR. IT WAS PRETTY MUCH A GIVEN THAT WAS DIRECTED WAS GOING TO GO. TODAY WE HAVE THE CHALLENGE BY THE FTC AND POSSIBLY BY THE U.K. IN EUROPE AS WELL. ED:
BLOOMBERG INTELLIGENCE JEN, THANK YOU FOR JOINING US ON A FRIDAY, TOP STORY OF THIS WEEK. CAROLINE AS WE ALWAYS DO WENT THE AUDIENCE AND SAID, WHAT DO YOU MAKE OF M&A RIGHT NOW FOR TECH? THE ANSWERS ARE CONSISTENT FOR WHAT WE HAVE HEARD. CLAMP DOWN UNDERWAY. CAROLINE: FRONT AND CENTER, WE KNOW, THIS IS NOT A U.S. THING. THIS IS A YOUR -- EUROPEAN THEME, ACROSS THE SPECTRUM. ACTIVISION BLIZZARD AND MICROSOFT, FOR ADOBE, THEY ARE AWARE OF IT. ED: IT IS A MULTISTEP PROCESS THEY
CONTINUE TO TRACK IT. WHAT IS NEW IN THE WORLD OF AI? IT CLAMP DOWN ON CHAT GPT FROM CHINA TO WALL STREET. THAT IS NEXT. THIS IS BLOOMBERG. ED: TIME NOW FOR TALKING TECH. CHINA WILL INTRODUCE RULES TO GOVERN THE USE OF AI ACROSS A SWATH OF INDUSTRIES. IN AN EFFORT TO REGULATE EMERGENT FEARS AS CHAT GPT SWEEPS THE SECOND LARGEST ECONOMY. THEY WILL PUSH FOR SAFE
CONTROLLABLE APPLICATION OF AI SERVICES THAT THEY CONTINUE -- CONSIDER A STRATEGIC INDUSTRY AND CONTINUE TO MONITOR THE EVOLUTION. A BETTER UNDERSTANDING AROUND THE ETHICAL CONCERNS OF AI. META INTRODUCED A RESEARCH TOOL FOR BUILDING AI-BASED CHAT PRODUCTS, SEEKING TO -- THE TOOL, LLAMA, IS META'S LATEST ENTRY INTO THE REALM OF LEG WHICH MODELS.
MARK SAYS IT SHOWS A LOT OF PROMISE ENGENDERING TEXT, HAVING CONVERSATIONS, SUMMARIZING WRITTEN MATERIALS AND COME TO K TASKS SUCH AS MATH PROBLEMS AND PROTEIN STRUCTURES -- BANK OF AMERICA, CITIGROUP, OR TWO, AND WELLS FARGO -- DEUTSCHE BANK, AND WELLS FARGO, HAVE SAID THAT CHAT GPT AND OPEN AI TOOLS ARE PROHIBITED FROM BUSINESS USES. THIS FOLLOWS THE REPORT THAT JP MORGAN'S COULD IMPLEMENT EQUIVALENT MEASURES THIS WEEK. I FIND THIS SO INJURED IN, GOES BACK TO A NVIDIA CEO SAID THIS WEEK. IT IS THAT CHAT GPT IS GREAT, THE MOMENTUM AROUND IS GREAT. WHEN BUSINESSES NEED A TOOL THEY DO NOT NEED CHAT GPT. THEY NEED SOMETHING APPROPRIATE AND CUSTOM FOR THEM. CAROLINE:
THEY ALSO DO NOT NEED THE RISK OF PEOPLE SHARING INTERNAL INFORMATION THAT GETS SPIT OUT IN AN INQUIRY DOWN THE LINE. THERE IS A REPORTING THAT AMAZON TOOK SIMILAR VIEW, THE GENERAL COUNCILS WERE THAT CERTAIN TYPES OF CONVERSATION LOOKED REMARKABLY LIKE SENSITIVE INFORMATION OF THEIRS. WE HAVE TALKED ABOUT, THE CYBER RISK TILT INTO THIS LARGE LANGUAGE MODELS. THIS -- BUILT INTO THIS LARGE
LANGUAGE MODELS AND GENERATIVE AI. ED: THE CONTENT RISKS AS WELL, WE REPORTED ABOUT THE INACCURACIES THE AI TOOLS ARE GENERATING. THINK ABOUT HOW BART'S LONG -- BARD'S LUNCH WEEK. -- LAUNCH WEEK. CAROLINE: WE CONTINUE TO DIVE INTO THE LANGUAGE MODELS I AM STILL TRYING TO WORK OUT WHAT LLAMA STANDS FOR. ED: WHY NOT LLAMA?
CAROLINE: I LOVE IT, WE ARE TURNING TO CRYPTOCURRENCIES AND DISCUSS THE OUTLOOK FOR INVESTMENTS IN AGILE ASSETS. JILL TALKS ABOUT ALL THINGS THE INFRASTRUCTURE OF ALL -- CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY," I'M CAROLINE HYDE IN NEW YORK. ED: I AM ED LUDLOW IN SAN FRANCISCO. I WANTED TAKE A LOOK AT CRYPTOCURRENCIES. AN INTERESTING WEEK FOR CRYPTO -- RISK ASSETS.
THESE ARE THE BIGGEST TOKENS BY MARKET VALUE LOCALLY. IN BITCOIN'S CASE IS A RELATIVELY HIGH DEGREE OF CORRELATION BETWEEN THE NASDAQ 100 AND BITCOIN. ON THE WEEK RELATIVELY SUBSTANTIAL DECLINES. WILL READ ON THE BLOOMBERG TERMINAL, A GOOD PIECE FROM THE CROSS ASSET TEAM, A BIT OF A LIQUIDITY CRUNCH. AT THE TIMES OF CRISIS, THAT IS WHAT THE MARKET IS SEEING NOW. AS WE DISCUSSED ON TWITTER SPACES, THE KEY THE ROMANS OF THE FTX -- KEY DEVELOP AND SIT ON THE FTX.
ON A WEEK WHERE RISK ASSETS TAKE ON BOARD THE FUTURE OUTLOOK FROM THE FED AND WE TRY TO DRAW A CONCLUSION GOING FORWARD. CAROLINE: LET DRAW MORE CONCLUSIONS WITH JILL, DIGGING IN ABOUT THE CORRELATIONS. WE HAVE STARTED TO SEE A MOVEMENT AWAY. THE FACT THAT CRYPTO HAD BEEN RELATIVELY WELL BIT WILD -- WHILE TECH STOCKS HAD BEEN UNDER PRESSURE. ROMAINE:
CRYPTO HAS PERFORMED ROBUSTLY THIS WEEK SO FAR, NOTWITHSTANDING. IT HAS TAKEN A LOT OF PEOPLE IN INDUSTRY, BOTH ASSET ALLOCATORS AND BUILDERS BY SURPRISE. THE RUNNING JOKE IN THE INDUSTRY IS WHAT BEAR MARKET? IT FEELS LIKE WE DESERVED MUCH WORSE IN TERMS OF PRICE ACTION. OVERALL CRYPTO HAS BEEN VERY WELL BID. OVER THE COURSE OF THE START OF THIS YEAR.
PARTICULARLY WHEN YOU START TAKE INTO ACCOUNT THE HANGOVER PSYCHOLOGICALLY AS YOU MENTIONED FROM THE FTX FALLOUT AT THE END OF LAST YEAR. ALSO FROM THE UNITED STATES THE STATE OF REGULATORY PRESSURE THE INDUSTRY HAS BEEN COMING UNDER. CAROLINE: WE HAVE HEARD TIME AND TIME AGAIN, THAT SOME OF IT IS BACKWARDS-LOOKING, REGULATION BY ENFORCEMENT. WHEN YOU'RE TRYING TO CREATE THE INFRASTRUCTURE, HOW TO TRANSACT, HOW TO INTERACT ONLINE, DO YOU FEEL LIKE YOU HAVE ENOUGH GUIDANCE? GUEST: YES AND NO. WHEN WE TALK ABOUT THE GOVERNMENT IN THE MEDIA IT IS US AS ONE MONOLITH BUT THAT IS NOT THE CASE, CERTAIN AGENCIES IN CERTAIN DEPARTMENTS WITHIN THE U.S. GOVERNMENT ARE VERY PROACTIVE IN TERMS OF BEING HANDS-ON. WORKING DIRECTLY WITH BUILDERS.
I WOULD SAY THE TREASURY DEPARTMENT IN PARTICULAR HAS DONE A GOOD JOB OF CREATING CLEAR GUIDANCE AND BEING VERY FRIENDLY TO BUILDERS AND INNOVATORS. I WOULD SAY OTHER AREAS OF THE U.S. GOVERNMENT HAVE BEEN MUCH MORE OPAQUE IN TERMS OF WHAT THEY WANT OUT OF THE INDUSTRY. IT HAS BEEN MORE REGULATION BY ENFORCEMENT. THAT DOES GREAT CHALLENGES. THAT IS THE U.S. GOVERNMENT -- THAT DOES CREATE CHALLENGES. THAT IS JUST THE U.S.
GOVERNMENT. ONE OF THE BEAUTIFUL THINGS ABOUT THE CURRENCY IT IS LARGELY GLOBAL. A MUCH LARGER CHESS GAME THAN THAT. ED: YOU MENTIONED THIS WEEK BEING AN OUTLIER BASED ON PERFORMANCE OF DIFFERENT DIGITAL ASSETS SO FAR THIS YEAR. YOU PROBABLY HEARD ME TALK ABOUT THIS IDEA IN THE MARKET THAT THERE IS SOME CAUTION THAT IS IMPACTING THE QUIDDITY.
IN OTHER WORK -- IMPACTING LIQUIDITY, OR THE OTHER HEADLINES ROLLING AROUND THIS INDUSTRY ARE DIRECTLY INDUCING A LIQUIDITY CRUNCH. IS THAT SOMETHING YOU ARE SEEING? GUEST: IT IS A CONCERN. FOR MOST PEOPLE IN THE INDUSTRY IT HAS BEEN A PLEASANT SURPRISE HOW MUCH LIQUIDITY IS STILL SLOSHING AROUND IN THE MARKET. AGAIN, FOLLOWING THE REALLY SERIOUS ALL AT THE END OF LAST YEAR. I WOULD SAY IT IS A CONCERN. CERTAINLY HAS BEEN OVER THE COURSE OF THIS WEEK.
ESPECIALLY AS PEOPLE KEEP AN EYE ON WHAT THE FED IS DOING. AS RISK ASSETS TRADE DOWNWARD MORE BROADLY. IT IS ON PEOPLE'S MINDS. FROM WHERE I AM SITTING, IT IS LESS SO THAN WHAT I WOULD HAVE EXPECTED. PART OF THAT, AND A LOT OF PEOPLE IN THIS MARKET, BOTH INVESTORS AND THIS MARKET AS WELL AS BUILDERS IN THIS MARKET TEND TO TAKE A LONGER-TERM OUTLOOK. PLAYING LESS ON THE SHORT-TERM TIME HORIZONS.
I THINK THERE IS A LOT TO BE BULLISH ABOUT. THEREFORE A LOT THAT IS KEEPING LIQUIDITY IN CRYPTO ASSETS AND IN THE SYSTEM. FOR THAT MUCH LONGER TERM PERSPECTIVE. ED: WITH THAT IN MIND YOU TALK ABOUT THERE BEING A LOT TO BE BULLISH ABOUT. WHAT ARE THOSE THINGS? I REMEMBER ON A DAILY BASIS REFERRING TO BITCOIN AS AN INFLATION HEDGE. WE DO NOT SAY THAT AS MUCH ANYMORE.
WHAT ARE THE UNDERLYING FACTORS THAT LONG-TERM INVESTORS DIFFERENT DIGITAL ASSETS CAN SAY? GUEST: A LOT OF IT IS DEEP IN THE WEEDS INFRASTRUCTURE BUILDING THAT IS HAPPENING RIGHT NOW -- COINBASE ANNOUNCED THEY WERE WORKING ON THEIR OWN VERSION OF A LAYER TWO SCALING SYSTEM FOR IT. . -- OR ETHEREUM. THIS A BE A LAYER ON TOP OF ETHEREUM TO MAKE THE UNDERLYING PROTOCOL MORE ACCESSIBLE AND SCALABLE. FASTER INPUT, ALL THE COMPLAINTS USERS AND DEVELOPERS OF HAD FOR YEARS ABOUT THE ISSUES IN THE SPACE. IT IS OUTSIDE THE INFLATION HEDGE A STORY THAT THEY HAVE BEEN HANGING THEIR HAT ON, FOR USE CASES LIKE PAYMENT AND FINANCIAL INFRASTRUCTURE. IT IS A LOT OF DEEP IN THE
WEEDS TECHNICAL ENVELOPMENT -- DEVELOP AND R&D. NOT STUFF THAT IS MAKING HEADLINES EVERY DAY. WHEN YOU'RE IN THOSE WEEDS IT CAN FEEL VERY PROMISING AND VERY POLISHED -- BULLISH. A LOT OF INVESTORS IN THE SPACE
SPENDS TIME DOWN THE RABBIT HOLE AS WELL. CAROLINE: YOU ARE ONE OF THE INVESTORS AND THEN ONE OF THE BUILDERS FOR THE FOCUS POINT FOR INFRASTRUCTURE. WHAT HEADLINES SHOULD BE WRITTEN ? WHAT IS THE DECENTRALIZED APPLICATION? IS A PAYMENT? IS IT STORAGE? WHERE DOES END UP BEING PRACTICAL IN OUR EVERYDAY? GUEST: TO ANSWER YOUR FIRST QUESTION IN TERMS OF THE HEADLINES THAT SHOULD BE WRITTEN , I THINK THIS LAYER TWO STORY AROUND ETHEREUM SCALING, AGAIN THAT MEANS LOWERING THE EASE FOR END-USERS -- FEES FOR END-USERS, FASTER TRANSACTION RATES AND HIGHER INPUTS. THAT IS THE STORY THAT SHOULD BE WRITTEN. THERE IS A LOT OF ATTENTION LAST YEAR TO THE UPGRADE OF THE THEORY HIM -- IF THEORY HIM.
MOVING -- ETHERIUM TO BEING PROOF OF WORK. IT WAS BAD FOR THE ENVIRONMENT, PART OF THIS BID OVER THE COURSE OF THIS YEAR HAS BEEN FOLLOWING ON FROM THAT DEEP IN THE WEEDS FOR STRUCTURE WORK. I THINK WE HAVE YET TO SEE WHAT APPLICATIONS WILL END UP COMING OF THIS. WE ARE IN AN INFRASTRUCTURE BUILDING PHASE FOR THE INDUSTRY AS OPPOSED TO AN APPLICATION BUILDING PHASE AS OF RIGHT NOW. I PERSONALLY AM VERY BULLISH ON THE PAYMENTS IS CASE. -- USE CASE. IT HAS BEEN THE HOLY GRAIL OF
CRYPTO, GOING BACK TO BITCOIN, THE ORIGINAL VISION OF THE COIN THAT HAS YET TO COME TO FRUITION -- OF BITCOIN YET TO COME TO FRUITION. ED: REALLY INTERESTING THAT YOU AND ON AND FOR STRUCTURE -- END ON INFRASTRUCTURE. A HEADLINE ABOUT PUERTO RICO GIVING TAX BREAKS TO BLOCKCHAIN DEVELOPERS. THE REASON I BRING THAT UP, WE ARE TRYING TO GAUGE, CAROLINE AND I, ABOUT HOW SUPPORTIVE THE UNITED STATES IS AS A PLACE TO FOSTER UNDERLYING TECHNOLOGY. ALL THE HEADLINES THIS WEEK AND
WITH THAT IN MIND, WHAT IS YOUR ASSESSMENT OF THE HEALTH OF THIS INDUSTRY IN AMERICA RIGHT NOW? GUEST: I WILL BE HONEST I THINK IT IS A CHALLENGE FOR THE UNITED STATES. IT IS A CHALLENGE THE FOLKS IN D.C. ARE DOING WELL TO START PAYING ATTENTION TO. I SAY THAT IN THE PRESENCE -- PRESENT TENSE. ONE OF OUR INVESTORS ELECTRIC CAPITAL PUT OUT THEY DEVELOP A REPORT EVERY YEAR. OVERWHELMINGLY THAT WAS NOTABLE TO ME ON THE REPORT THIS YEAR WAS THE EXODUS OF DEVELOPERS DOMICILED IN THE UNITED STATES VERSUS THE OTHER PARTS OF THE WORLD OVER THE LAST TWO TO THREE YEARS.
A LOT OF THAT COMES DOWN TO THE REGULATORY ENVIRONMENT. A LOT OF US STILL FEEL STRONGLY ABOUT U.S. DOMICILED COMPANIES, BUILDING HERE DESPITE THE HEADWINDS THAT COMES TO US. WORKING DIRECTLY WITH REGULATORS, POLICYMAKERS, EVEN ENFORCEMENT OFFICERS IN WASHINGTON TO MAKE SURE WE ARE BUILDING THINGS RIGHT.
THERE ARE STILL MANY OF US, BUT IT HAS NOT BEEN EASY, AND ONLY SEEMS TO BE GETTING HARDER. KUDOS TO THOSE IN WASHINGTON PAYING ATTENTION TO THIS DYNAMIC AND ARE FIGHTING TO KEEP THE INNOVATION ONSHORE IN THE US. CAROLINE: KUDOS TO YOU FOR TELLING US ABOUT IT, THANK YOU. ALWAYS LOVE HAVING HER ON THE SHOW, THANK YOU, HAVE A GOOD WEEKEND. IT HAS BEEN ONE YEAR SINCE THE START OF THE WAR IN UKRAINE. WE WILL COME BACK ON SEGA START
-- STATE OF CYBER WARFARE ON THIS. THIS IS BLOOMBERG. ♪ CAROLINE: TODAY MARKS ONE YEAR SINCE RUSSIA'S INVASION OF UKRAINE. THE WAR UNDERWAY IS NOT ONLY ON THE GROUND. IT IS ALSO IN CYBER WARFARE. OUR NEXT GUEST SAYS RUSSIA IS LIKELY TO KEEP CARRYING OUT MORE CYBER ATTACKS AGAINST EU COMPANIES AND -- JOINING US NOW IS THE CYBERSECURITY FIRM ARCTIC WILL. -- WOLF. HOW WILL THESE ATTACKS TAKE PLACE? GUEST: STEADYING IT OVER TIME, WE SAW THE BEGINNING OF THE CONFLICT, IS THAT RUSSIA, UKRAINE, NEIGHBORING COUNTRIES POINTED TO GAZE AT EACH OTHER AND AWAY FROM EUROPEAN COUNTRIES AND COMPANIES IN THE U.S.. WHAT WE ARE STARTING TO SEE NOW AFTER WHAT WAS A BIT LUL IN 2022 AS A RESURGENCE OF ACTIVITY IN 2023 AS FOLKS USE THEIR TIME, ENERGY, RESOURCES TARGETING BOTH EUROPEAN AND U.S. COMPANIES IN KIND.
AS THEY CONTINUE TO WORK ON AND EVOLVE THERE STRATEGY IN REGION. ED: WHAT IS INTERESTING FOR ME, IS THAT I KNOW THE ACTIVITY SPECIFICALLY AROUND THE WORLD -- WAR IN UKRAINE, IS HIGH AT THE START, THERE IS SOME DATA SUGGEST THAT RANSOMWARE ATTACKS ORIGINATING FROM RUSSIA IN PARTICULAR HAVE DECREASED. WHY IS THAT? GUEST: RIGHT NOW THERE FOCUSED ON DEFENSE WITH THE CRANE, -- AGAINST UKRAINE, WHAT THEY NEED TO DO TO WIN THE CURRENT WAR.
WHAT WE SEE AS IT RELATES TO BUSINESSES IS AN INCREASE. WHILE A LOT OF THE NATION STATE ACTORS ARE FOCUSED ON EACH OTHER, WE ARE SEEING THE SMASH AND GRAB TYPE BAD ACT YEARS -- ACTORS HAVE TO FIND A WAY TO MAKE MONEY. HOW TO FIND A WAY TO SUPPORT THEIR LIVELIHOOD. THEY ARE DOING SO THROUGH A RESURGENCE IN ACTIVITY INTO THE EUROPEAN AND U.S. MARKETS. WE SEE THAT BOTH THROUGH OUR
CORE BUSINESS AND COMPANIES TRYING -- IN COMPANIES TRYING TO FIND A WAY TO BOLSTER THEIR SECURITY DEFENSES AND POSTURE. ALSO THROUGH INCIDENT RESPONSE. CAROLINE: ANY TYPES OF COMPANIES IN PARTICULAR WHERE THE VULNERABILITIES OF MOST ACUTE OR THE WORRIES OF MOST PERNICIOUS? I ASSUME IT IS UTILITIES AND ENERGY COMPANIES, WHAT ELSE MIGHT WE NOT THINK OF? GUEST: UTILITIES, ENERGY COMPANIES, HEALTH CARE ORGANIZATIONS, FINANCIAL INSTITUTIONS. UNFORTUNATELY WE ARE SEEING ACTIVITY ACROSS THE BOARD AND IT. IS FOR A VARIETY OF REASONS
THOSE REASONS ARE SOMETIMES UNKNOWN UNTIL AFTER THE FACT. I DO NOT THINK THERE IS ANY INDUSTRY OR BUSINESS THAT IS IMMUNE TO THE THREAT OF CYBER ACTIVITY OR CYBER WARFARE. US AS A BUSINESS, AT ARCTIC WOLF , OUR BUSINESSES AROUND TO END CYBER RISK FOR OUR CUSTOMERS AND STABILIZE THE ENVIRONMENT FOR THE MARKET WHOLESALE. ED: ONE OF THE TOOLS THE UNITED STATES UTILIZED IN CONJUNCTION WITH ALLIES HAS BEEN SANCTIONS. THOSE HAVE LARGELY TO BE DISRUPT THE -- LARGELY TO DISRUPT THE MOVEMENT OF MONEY ACROSS BORDERS, DISTINCTIONS FIT INTO CYBERSECURITY? GUEST: I DO NOT THINK IT PLAYS AS STRONG OF A ROLE, GIVEN THE NATURE THAT RANSOMWARE AND BAD ACTORS MAKE THEIR MONEY. A LOT OF IT IS DONE THROUGH RANSOMWARE PAYMENTS.
THROUGH CRYPTO CURRENCY. UNFORTUNATELY, THERE ARE NOT STRONG MECHANISMS TO BE ABLE TO TRACK THAT DOWN AND/OR REPLACE SANCTIONS AND THINGS LIKE THAT. CAROLINE: THIS MIGHT BE A TOUGH QUESTION. FORGIVE ME. ONE OF THE STORIES WE FOCUSED ON WHEN THIS FIRST ERUPTED WAS THE HUMAN SIDE OF ALL THIS. IN MANY WAYS, THE TALENT SIDE. IN PARTICULAR, UKRAINE, PHENOMENAL DEVELOPERS.
COMPANIES HAD BIG TEAMS THERE. WHAT ABOUT THE TALENT FLOW OUT OF RUSSIA? HAVE WE SEEN THE REALLY KEEN BELLA BIRDS AND THOSE GOOD AT CYBER HACKING AS WELL -- DEVELOPERS AND THOSE GOOD AT CYBER HACKING STILL THERE? GUEST: THERE IS EVIDENCE QUITE IF YOU HAVE LEFT. THEY ARE FORMING ALLIANCES WITH OTHER FOLKS THEY MAY HAVE KNOWN IN RUSSIA OR OTHERWISE AS PART OF A PREVIOUS GROUP. CERTAINLY I THINK THAT IS ALSO
WHY WE ARE STARTING TO SEE CHANGES IN THE WAY IN WHICH THE COMPANY -- COUNTRIES ARE OPERATING WITH OR AGAINST EACH OTHER. THERE IS IN SOME WAYS A TALENT SHORTAGE FOR THE NATIONSTATES AS IT REVOLVES AROUND CYBER BOTH ON THE DEFENSIVE AND OFFENSIVE. AS THOSE GROUPS START TO REEMERGE AND START TO GET BACK TOGETHER, WE WILL SEE THAT THEY ARE LEVERAGED BOTH AS PART OF WHAT IS HAPPENING WITH THE NATIONSTATE. WE WILL ALSO SEE THEM OPERATIONALIZE AND GET STRONGER WITH REGARD TO THEIR DAY-TO-DAY.
THAT IS TO ATTACK EUROPEAN AND U.S. ENTITIES. ED: NICK SCHNEIDER, ARCTIC WOLF CEO, THANK YOU FOR JOINING US. MARKING ONE YEAR SINCE RUSSIA'S INVASION OF UKRAINE, CYBERSECURITY PLAYING A BIG ROLE. THANK YOU FOR YOUR TIME.
COMING UP WE WILL WRAP UP THE WEEK THAT WAS INTACT, THE SUPREME COURT WILL DISCUSS THE FUTURE OF SECTION 230. MUCH MORE WITH NORA FROM THE FREE PRESS. CAROLINE: THAT'S GET BACK TO THIS WEEK'S BIG STORY ON THE HILL IN THE WORLD OF TECHNOLOGY. SECTION 230 WE ARE JOINED BY NORA, FROM THE FREE PRESS, AND ADVOCACY GROUP THAT FILED ONE OF THE AMICUS BRIEFS IN THE GOOGLE VERSUS GONZALEZ CASE. YOU TESTIFIED IN FRONT OF
CONGRESS GRIEVOUSLY ON THE SUBJECT. THE ARGUMENT WAS MADE, WHY FROM TECHNOLOGY'S PERSPECTIVE WHY IT WOULD BE WRONG TO OVERDO AND THROW OUT SECTION 230 AND ITS PROTECTIONS. IS THERE NUANCE? WAYS IT CAN BE MORE TARGETED AND PROTECTED SO I CAN PUSH BACK ON HATE SPEECH? GUEST: THANK YOU FOR HAVING ME. WHAT HAS BEEN DIFFICULT BUT THE CASE THIS WEEK IS THAT THE FACTS ARE SO TRAGIC. THE CASE STEMMED FROM THE KILLING OF A YOUNG COLLEGE STUDENT WHO WAS TRAVELING ABROAD. THE FAMILY FEELS YOUTUBE, AND BY EXTENSION GOOGLE, ARE REALLY AIDING AND ABETTING TERRORISTS BY RECOMMENDING TERRORIST RELATED CONTENT.
BECAUSE THEIR CHILD WAS KILLED BY ISIS. THOSE ARE SOME OF THE WORST FACTS. THE COURT HAS STRUGGLED TO GRAPPLE THIS WEEK WITH WHERE LIABILITY SHOULD REST. GOOGLE ARGUED IT IS NOT LIABLE BECAUSE
IT IS SHIELDED FROM SUIT BY SECTION 230. THAT PROTECTS THEM THEY ARE ARGUING. THE FAMILY FEELS GOOGLE SHOULD BE LIABLE BECAUSE IT MAKES RECOMMENDATIONS. IT'S ALGORITHMS ARE GIVING PEOPLE CONTENT. IT IS THE FIRST TIME THE COURT HAS HEARD OR CONSIDERED SECTION 230.
WHEN YOU TAKE A STEP BACK IT IS A MONUMENTAL CASE IN THAT WAY. FOR ALMOST THREE HOURS THE COURT WRESTLED WITH THIS QUESTION. I DO NOT KNOW HOW FAR THEY GOT. THEY TRY TO CONSIDER THE DISTINCTION, IF ANY, BETWEEN RECOMMENDING CONTENT VERSUS PUBLISHING CONTENT. CAROLINE: IT FELT THAT THERE WERE VERY AWARE INVOICED IT THAT THEY WERE NOT TECHNOLOGY EXPERTS. ULTIMATELY, IT FELT LIKE IT WAS
THE WRONG CASE FOR THEM TO BE DECIDING THIS. THEY DO WANT TO REASSESS SECTION 230, PARTICULARLY THE RIGHT-LEANING JUSTICES. TALK TO US ABOUT IF IT CAN BE UPDATED IN THE RIGHT WAY FROM YOUR PERSPECTIVE? GUEST: GREAT QUESTION.
THE JUSTICES COVERED A WIDE RANGE OF THINGS. I WOULD SAY, THE FULL GAMBIT WAS FROM CAUTION TO CONFUSION ABOUT THE COMPLEXITIES HERE. THE COMPLEXITIES OF RULING ON SOMETHING. THE POTENTIAL LIABILITY FOR PLATFORMS. ULTIMATELY THERE SEEM TO BE A RECOGNITION FROM THE COURT THAT IT MIGHT MOUNT BE -- NOT BE THE BEST PLACE TO DO THE BALANCING AND TRADE-OFFS THAT WOULD BE REQUIRED OR AMENDING SECTION 230. THAT MODIFICATION, IF HAPPENING AT ALL NEEDS TO COME FROM SOMEWHERE ELSE.
THAT IS SOMETHING FREE PRESS HAS BEEN INCREDIBLY ACTIVE ON. ED: I AM SO GLAD CAROLYN ASKED THAT QUESTION. FOR ME THE OTHER PART OF IT, IS NOT NECESSARILY WHO SHOULD BE CONSIDERING THIS.
WHAT HERE TALKING TO SOCIAL MEDIA COMPANIES, TALKING ALSO TO DIFFERENT PARTIES TO WHAT IS GOING ON, IS THAT WHERE DO WE ASK THE RIGHT QUESTIONS? WHAT WE ARE NOT HEARING ARE, WHAT ARE THE TECHNOLOGICAL SOLUTIONS? WHAT IS IT WANTS TO FIX THIS ISSUE? GUEST: EVERYBODY LOVES TO DEBATE SECTION 230. SOMETHING THERE IS A BLUNT SOLUTION DOING AWAY WITH IT ALTOGETHER COULD SOLVE SOME PROBLEM SENDING ANNETTE. I DO NOT -- SOLVE SOME PROBLEMS ON THE INTERNET.
I DO NOT THINK THAT IS A CASE IT IS A NECESSARY AND FOUNDATIONAL LAW. FOR TWO CASES, IT LOWERS BARRIERS FOR PEOPLE SHARING CONTENT ONLINE. WITHOUT IT, PLATFORMS WOULD BE FORCED TO VET ANY CONTENT THEY ARE POSTING, THEY WOULD NOT WANT TO BE LIABLE FOR EVERYTHING THEIR USER'S SAY AND DO. THE TEST RIGHT NOW SHOULD NOT BE WHETHER A PLATFORM FILTERS OR RECOMMENDS CONTENT. IT NEEDS TO BE IF PLATFORMS
HAVE THE ACTUAL KNOWLEDGE OF THE GRIEVOUS HARMS CAUSED BY CONTENT ON THEIR PLATFORMS. ED: NORA, DIRECTOR OF DIGITAL JUSTICE AND CIVIL RIGHTS FOR THE FREE PRESS. THANK YOU. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." I KNOW, I AM SET, TOO. -- SAD, TOO.
CAROLINE: I HOPE WE HAVE A LIGHTHEARTED WEEKEND AT OF YOU, YOU CAN TUNE IN FOR THE PODCAST, ON APPLE,
2023-02-27 11:29
